Within the BioVill project, supported by the European Union through the Horizon 2020 Research and Innovation Program, activities were carried out in the municipality of Bajina Bašta, and the village Kostojevići, with the goal of creating the conditions for the establishment of the first bioenergy village in Serbia. During the project implementation experience and knowledge about bioenergy villages from Germany and Austria have been used, since those are the countries where the concept of using locally available biomass to meet the energy needs of local communities has long been known and applied.

For the Kostojevići village, which is the only village in Serbia with already built network and district heating system, a previous techno-economic study was carried out for switching from the use of crude oil to biomass as a basic fuel. The study showed that the cost-effectiveness of the project, which involves the replacement of one 750 kW fossil fuel-based boiler with two biomass boilers (500 kW base load boiler and 200 kW spare boiler), depends on the source of financing, the business model, but also on the increase in user consumption. The models discussed include the change in management of the district heating system to energy cooperative that could be formed in the village or the involvement of a private operator, but also retention of the district heating system in Kostojevići within Public Utility Company BB Term from Bajina Basta which is currently operating the system. The BioVill project supported the Municipality of Bajina Basta that had begun to prepare technical documentation in order to make the project ready for financing and realization before the next heating season starts.

During the last info days for the bio-energy village Kostojevići, on February 12, 2019, in Bajina Bašta, a Letter of Commitment was signed with which the most important local actors, including the Municipality of Bajina Bašta, PUC BB Term and local community of Kostojevići, as well as the Standing Conference of Towns and Municipalities, express their readiness to continue with activities that would lead to realization of the project of replacing the boiler in Kostojević and initiation of the first bioenergy village in Serbia.